AuthenTec Sets 2 Fingerprint Biometric Industry Records

– AuthenTec’s Power of Touch in 100 different PC, peripheral and cell phone models –

MELBOURNE, FL/NEW YORK, NY — July 25, 2005 — AuthenTec, the world leader in fingerprint sensor innovation and sales for more than five years, has set two fingerprint biometric industry records — shipping its 5 millionth fingerprint sensor, and being named worldwide leader in fingerprint sensors by global industry analyst firm Frost & Sullivan for the third time in a row.

AuthenTec has shipped its 5 millionth fingerprint sensor in five years — a record in the industry — which represents about two-thirds of all fingerprint sensors shipped during that period. The company now provides its unique Power of Touch to more than 100 different PC, wireless and access control products.

The company’s sensors are used extensively in notebook and tablet computers, portable hard drives, mice, keyboards, memory keys, cell phones and other devices. The rate of adoption of the company’s sensors continues to expand further into major mainstream PC and cell phone companies, with HP, Toshiba, Fujitsu, Motion Computing, APC, Samsung and LG all recently announcing new products featuring AuthenTec sensors.

“AuthenTec is helping to drive the worldwide adoption of biometrics in the consumer electronics industry,” said Gary Shapiro, president and CEO of the Consumer Electronics Association. “Biometric sensors are a huge growth area. We are at the infancy of what will be a very large growth curve, heading toward biometric sensing devices becoming an important feature in consumer electronics.”

In its second major announcement, AuthenTec was named the worldwide leader in fingerprint sensors for the third year in a row in a major research report on the biometrics market by global industry analyst firm Frost & Sullivan. AuthenTec received the firm’s 2005 Market Leadership Award after extensive analysis, research and tracking of the biometrics industry for Frost & Sullivan’s World Silicon Chip Fingerprint Market Report.

AuthenTec was named the three-peat winner of the award because of its overall leadership in the industry — including significant growth in sensor shipments and revenues, new customer adoption in the PC and wireless markets, product introductions, and global marketplace expansion.

The award is based on AuthenTec’s performance during 2004 and the first quarter of 2005. During that period, the company:  Shipped more than 2 million sensors to PC and wireless customers — more than any other company;  Added major new PC and wireless customers such as HP, Toshiba, Fujitsu, Samsung, Motion Computing, LGE and NTT DoCoMo;  Introduced the EntrePad 1510, the industry’s smallest and lowest cost fingerprint sensor;  And announced a 50 percent expansion, with new operations in Asia, Europe and the U.S.

“AuthenTec has raised its profile in the industry and enhanced its credible reputation with continued project wins in the wireless and PC/network security markets, a comprehensive marketing push, and continuous product research and development to design smaller and lower cost sensors without compromising on quality,” said Sapna Capoor, Frost & Sullivan industry analyst.

“AuthenTec’s overall leadership in the silicon chip fingerprint industry can be attributed to its unique technology for fingerprint sensors, sustained key project wins in the Asia Pacific region for biometric cell phones, as well as key project wins globally for the PC/network security solution market. In addition, the company’s ongoing development of distribution and marketing channels worldwide to ensure continued growth in both application areas holds it in a very strong position for future growth,” she added.

To determine the award winner, Frost & Sullivan analysts track competitor unit, shipment, revenue, and market share within the industry, and determine if the recipient has excelled by substantially increasing one or more of the following areas: market share; revenue growth rates; profitability and market and technology innovation. The analysts then compare and rank the competitors for their relative position.

“The combined 5 millionth fingerprint sensor shipment and three-peat World Leadership Award are tremendous events for our company, and signal that biometrics has entered the mainstream consumer and commercial products market,” said Scott Moody, president and CEO of AuthenTec. “We are excited by the increased demand for the advanced security, ease of use, and other benefits that our fingerprint sensors provide.”

Founded in 1998 with a small team and a single prototype, AuthenTec today offers 14 different fingerprint sensors that are based on its patented TruePrint technology, the only technology in production that reads below the surface of the skin to the live layer — or true fingerprint. Unlike competing sensor technologies, TruePrint is not affected by common skin surface conditions including dry, worn, calloused, dirty or oily skin that can affect other sensors’ ability to acquire accurate fingerprint images for user authentication purposes. That makes TruePrint the only fingerprint sensor technology capable of acquiring everyone’s fingerprint under virtually any condition.

AuthenTec sensors are widely used in notebook and tablet PCs to provide advanced security and to replace the need for passwords — allowing authorized users to easily and quickly access their files by simply touching or sliding their finger across the sensor surface, while restricting access to the computer and its files to only those enrolled. This reduces the risk of theft or fraud. AuthenTec sensors also make PCs easier to use, by enabling users to quickly open applications, switch desktop applications, or scroll through menus — at the simple swipe of their finger.

In cell phones, AuthenTec sensors combine security with a broad range of features and functions that are controlled at the simple touch or swipe of a finger. In security, the sensor replaces passwords and authenticates the phone’s user — protecting buddy lists and stored photos, and providing additional security for m-commerce and mobile banking services that are gaining popularity worldwide. The same sensors enable users to easily personalize and operate their cell phones with multi-finger speed dial, instant buddy list access, and other functions. In addition, the sensors provide easy full navigation for wireless gaming.

About Frost & Sullivan Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

About AuthenTec With five million sensors in use worldwide, AuthenTec is the world leader in fingerprint sensor innovation and sales to the PC, wireless, and access control markets. AuthenTec’s award-winning FingerLoc and EntrePad sensors take full advantage of The Power of Touch by utilizing the company’s patented TruePrint technology to deliver the most convenient, reliable and cost-effective means available for enabling touch-44.7789.684159powered features that extend beyond user authentication. The company’s network of partners, solution providers and customers include: Analog Devices, APC, Compal, Cherry, Fujitsu Computer, Computer Associates, Electrovaya, Fellowes, HP, IBM, LGE, Microsoft, Motion Computing, Samsung, Tatung, Texas Instruments, Toshiba, Quanta, among others. Visit www.authentec.com.